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TMI Blog2021 (3) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... staken cash deposit which is Assessing Officer extended to other issues such as how Chartered Accountant can deposit such huge cash deposit and withdrawal the cash. Same is not permissible under law particularly when case was selected for limited scrutiny. In the result, appeal of the assessee is allowed on legal ground however we do not want to go into the merit of the case. - ITA. No. 2183/Ahd/2018 - - - Dated:- 22-2-2021 - SHRI MAHAVIR PRASAD, JUDICIAL MEMBER And SHRI WASEEM AHMED, ACCOUNTANT MEMBER) Appellant by : Shri Mehul Thakkar, A.R. Respondent by : Shri Virendra Singh, Sr. D.R. ORDER PER MAHAVIR PRASAD, J.M. 1. This appeal filed by the Assessee is directed against the order of the Commissioner of Income Tax ( hereinafter called CIT(A) ) order no. CIT(A)-5/ITO. Wd. 5(3)(1)/10531/16-17 order dated 14/08/2018 arising out of assessment order dated 30/12/2016. Assessee has taken following grounds of appeal: 1. The order passed by A.O. u/s 143(3) of the IT Act, 1961 is illegal, unlawful and against the principles of natural justice and the order of the Ld. A.O. confirmed by the CIT(A)-5, Ahmedabad is also illegal, unlawful and against the pri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deleted. The ground raised above is a legal ground and goes to the root of the matter. The adjudication of the above ground, in our belief, does not require any investigation of new facts pertaining to the case. It is, therefore, prayed that the additional ground may kindly be allowed to be raised by the appellant and the same may kindly be admitted and adjudicated in the interest of justice. 6. As assessee has taken additional legal ground, we admit the same. 7. We have gone through the relevant record and impugned orders and heard both the parties. And Ld. A.R. relied on a CBDT Circular No. 20/2015 [F. No. 225/269/2015-ITA-II], dated 29/12/2015 wherein at page no. 2 and Para No. 3 to 5 it has been mention therein: 3. As far as the returns selected for scrutiny through CASS-2015 are concerned, two type of cases have been selected for scrutiny in the current Financial Yearone is 'Limited Scrutiny1 and other is 'Complete Scrutiny'. The assessees concerned have duly been intimated about their cases falling either in 'Limited Scrutiny1 or 'Complete Scrutiny' through notices issued under section 143(2) of the Income-tax Act, 1961 ('Act' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... G.)/HQ/SI/2017-18], dated 30.11.2017: CBDT has issued detailed guidelines/directions for completion of cases of limited scrutiny selected through CASS module. These guidelines postulate that an Assessing Officer, in limited scrutiny cases, cannot travel beyond the issues for which the case was selected. The idea behind such stipulations was to enforce checks and balances upon powers of an AO to do fishing and roving inquiries in cases selected for limited scrutiny. 2. Further, the guidelines for proper maintenance of order sheets have been given in the Manual of Office Procedure issued by the Directorate of Organisation and Management Services. The Manual clearly lays down:- A. The minutes of the hearing must be entered with date, in the order-sheet. B. Make proper order-sheet entries for each posting, hearing and seeking and granting of adjournments. C. If nobody attends a hearing or the request for adjournment comes after the hearing date, enter the facts in the order-sheet. Maintenance of a cursory and cryptic order sheet shows irresponsible, ad hoc and undisciplined working of any officer. 3. Instances have come to notice of CBDT where some Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sited in the bank. Since you are a Chartered Accountant by profession, there is little chance to get such cash from the profession to deposit in the Bank. In case you have taken cash exceeding ₹ 20,000/- from your clients, please furnish a chart showing the name, complete postal address and PAN for taking appropriate action in their hands. Vide your letter dtd. 19.9.2016 you have contended that there are number of withdrawals of cash on various dates which were utilized into the Bank Account. Why your explanation should be accepted as true as nobody would withdraw cash from bank for deposing the same to the bank. This argument being unbelievable to accept, please show cause why such cash deposits of ₹ 2,46,07,700/- shown to have withdrawn from bank should not be accepted as true. 2.1 Vide your letter dtd. 19.9.2016 you have contended that there are number of withdrawals of cash on various dates which were utilized into the Bank Account. For withdrawing amount from Bank, there must be source is the Bank account. Please explain the source of the same with supporting evidence. 2.2 From the details filed, it is noticed that total withdrawals from Bank are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by assesse has made more withdrawal against the available deposit of ₹ 3,06,63,665/-. And further asked assesse to explain why the same should not be added to the total income treating the same as income from undisclosed source. 17. We have seen that ld. Assessing Officer issued four notices u/s. 142(1) all the notices were duly replied by the ld. A.O. though assessee case was selected for limited scrutiny but in each facts, Ld. A.O. went beyond contents of earlier facts. 18. As per CBDT Circular, Ld. A.O. can only examine those issues which the case has been selected or the issues mentioned therein. If the A.O. of the view that there is a potential escapement of income, he may convert the limited scrutiny in to complete scrutiny. But view should be reasonable view based on credible available or material available on record. And in this case, approval of the Pr.CIT/CIT is required and such approval shall be accorded by the Pr.CIT/CIT in writing after being satisfied about merit of the issues. 19. Necessitating complete scrutiny in that case but in the case in our hand, no prior permission was taken by the assesse. The only purpose for the selection of the case was mi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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